Weekly Update: December 31, 2014

| December 31, 2014

Weekly Update:  December 31, 2014


What To Watch

I hope everyone is enjoying the holidays and getting some much needed R&R. It’s the last day of 2014, so I thought it was a good time to send out one last (quick) update for this year.

Basically, the markets have been extremely quiet. That’s the norm as most of the investment world is taking these last two weeks of 2014 off. It looks like we’ll head into 2015 with positive momentum in stocks and a growing US economy.

That being said, let’s get right to the position updates.


Portfolio Recap

Position #1: Glu Mobile (GLUU) January 4 Calls

Price Paid: $0.28

Current Price: $0.20

Time Until Expiration: 16 days

GLUU has been trading right around $4 for the last week or so. We need one more decent move higher for our calls to get bid. Let’s see what happens in the New Year.


Position #2: Salesforce.com (CRM) January 17th 57.50 Calls

Price Paid: $1.45

Current Price: $3.25

Time Until Expiration: 16 days

CRM continues to be a big winner for us. We didn’t quite hit our aggressive exit point last week. But, our calls have been as much as 177% winners. Aggressive traders can continue to hold to $62, or go ahead and cash in for big profits now.


Position #3: Union Pacific (UNP) January 17th 115 Puts

Price Paid: $1.65

Current Price: $0.68

Time Until Expiration: 16 days

UNP has traded in basically a straight line since we bought our puts. The options have lost a lot of value due to a significant decrease in volatility. However, at the first sign of a down move, those puts should get bid up in a hurry. Action in this name should increase next week.


Position #4: Aeropostale (ARO) February 2.50 Calls

Price Paid: $0.25

Current Price: $0.25

Time Until Expiration: 50 days

We just made this trade yesterday, so no action yet. We’ll see what happens once investment professionals return to work next week.


Category: OTW Weekly Updates